Europe Day Ahead: BoE to give clues on stimulus thinking

Tuesday, September 18, 2012 - 03:26

Sept. 18 - With the UK set to emerge from recession in the fourth quarter, the BoE is expected to extend its easing programme, Saxo Bank's Nick Beecroft says the improving climate makes more action less likely.

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Investors piled pressure from Spain to also help so setting off a wave of bond buying -- ECB to rescue one of the puritans weakest economies. -- short term borrowing costs for that are reasonably well received bond auction earlier today. But the yield on Spain's ten year -- is hovering around 6% mark. The government says it still considering the terms of European bailouts are conditioned to ECB held. The pressure like you to grow in the coming days and welcome to our look at the trading day ahead we yes should get more clues to the Bank of England's thinking in minutes on Wednesday. A Reuters poll predicts the bank will wait until November to boost its QE program despite expectations. That the economy will bounce back from recession in the loss quarter of the year the bank is set to pump and another fifteen billion pounds. Uphold rules have predicts a further fifty billion to come -- to November. Making a final total of 425. Billion but -- banks they'd be cross says the improving economy actually makes more -- less likely. -- do have to say I should maybe -- The cloak of doom some most. From recent UK -- she's have to live at some positive surprises for the first some alone time. Right now if you ask me I'd say we rules scenes further quantitative easing according to the end of the British coming more ruthless -- Bank of Japan meanwhile wraps off its two day policy meeting more easing is becoming like me in the face off the strong yen but most observers reckon the BOJ will wait until next month facts. Markets are still on intervention watch at the same time analysts say the Japanese authorities need to follow the Fed's lead on stimulus. If they want to bring down the yen. Well -- steady in the wake of Monday's -- five dollar slide the decline is being variously put down the finger trouble. Computer trading. And rumors of an imminent release of US strategic crude stocks the Simon ward -- -- -- -- says there's no fundamental reason to suggest foreign oil prices. Economic outlook doesn't look great their concerns growing over over what's gonna happen with the Chinese economy. About the same token yes there's concern over potential supply disruptions as a result of these geopolitical issues. And of course Syria as well rumbling in the background wider risks in the region as well as the Iran situation. That's what's it really balance of those supply concerns and also worries over how how quick the economy's gonna grow. Also Wednesday the German government to selling -- billion euros in two -- federal -- German yields have risen from the record lows we saw earlier in the year. Reflecting the improvement in sentiment in the Euro zone Lisbon is also due to walks and up to one and three quarter billion euros in short term paper. Turning to stocks retailers will be in focus Spanish group India tanks the end of the czar chain. -- the world's biggest fashion retailer expects to post a 26% jump in first half earnings to 905. Million euros. Sales of being driven by in the Texas and bonds into new emerging markets. French connection will also reports interim numbers. That's -- an album has more on Reuters dot com and the inside of platform. And -- join us throughout the week for Reuters today a snapshot of the latest twelve is a market headlines -- AM London time. Each weekday and axles -- -- this is runs.

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